GENERAL FARM PROGRAM 659 



cumbersome; that is, it is not necessary to collect the tax and put the 

 tax in the Federal Treasury and have the Federal Government make 

 payment to each farmer. But the plan is about the same; is it not? 



Mr. Taylor. Yes. 



Mr. Hope. And that plan was operating very well, as far as the 

 wheat producers were concerned, until the Supreme Court knocked it 

 out? 



Mr. Taylor. Yes. 



Mr. Hope. Have you discussed this plan with the millers and dis- 

 tributors to any extent? I am asking that question because the millers 

 and the bakers, at least a part of them, objected to the processing tax, 

 although it was not the milling industry that brought the suit in the 

 Supreme Court, declaring that the processing tax was unconstitutional. 

 There was some opposition; and, since there was opposition among 

 them, I wonder whether there has been discussion of the legislation 

 which would again impose a processing tax, and whether similar opposi- 

 tion has been expressed. That is my reason for asking the question 

 whether you have had opportunity to discuss the matter with the 

 mUlers? 



Mr. Taylor. At the recent meeting of the Oregon wheat growers 

 in Pendleton, when John Lock was present, we were discussing the 

 International Wheat Agreement, and had been discussing a report from 

 him, and this matter came up of the plan to make this trip back 

 here, and we asked him what the millers would do in regard to the 

 certificate plan. 



Mr. PoAGE. Who is Mr. Lock? 



Mr. Taylor. President of the National Millers Association. He 

 was asked to give us his opinion concerning wheat moving through 

 regular market channels, under a two-price plan, and of disposing of 

 the surplus crop of wheat under a two-price plan, using the certificate 

 plan for the domestically used wheat; and, as I understand, they 

 would not object. That was the statement he made; they would 

 have no objection. 



Mr. Hope. Now, as far as the flour that went into export is con- 

 cerned, I presume the plan would provide that the miller would not 

 need to have a certificate for milling that wheat? 



Mr. Taylor. That is right. 



Mr. Hope. The wheat that goes into export flour; and there would 

 be some method by which he could get it, if he had to use a certificate, 

 when he acquired the wheat. 



Mr. Taylor. There would be no certificate on export products. 



Mr. Hope. That program would not interfere in any way with the 

 exportation of flour. 



Mr. Taylor. That is right. 



Mr. Hope. Now to that extent it would be better, as far as the 

 millers are concerned, than the price-support plan, where the Com- 

 modity Credit Corporation stabilizes the price of wheat by loans or 

 purchases, because, in the case of wheat, the miller might be buying 

 for export and he would have to buy at the support price. 



Mr. Taylor. Yes. 



Mr. Hope. And the only way the miller could export under those 

 circumstances would merely be by cutting the price he would receive 

 and receive some subsidy for the difference? 



Mr. Taylor. Yes. 



